There has been a very strong oversold bounce that has happened over the last week but the problem with such bounces is that you don’t know when to buy/sell. The Price Action is just all over the place. What can we do – Focus on stocks making new highs or making a Gap up move due to strong fundamental reasons and observe their price action behavior over time to understand whether such trades work or not.
Crude Oil Price is now trading at 7-year highs and it’s benefiting all Oil and Gas stocks. No wonder Oil and Gas stocks are making new highs
Exxon Mobil broke out above 65 and never looked back. It looks like a missed opportunity.
Can Occidental Petroleum OXY Large Candle Push mean a big trade is in the offing?
This is not the market to buy anything on strength but look for declines. It can be a good buy at 36
It’s not Occidental Petroleum OXY, APA Corp APA, Conco Philips COP, Marathon Oil MRO all making new high moves. There is momentum in Oil and Gas Equipment and services NEX NexTier Oilfield Solutions. One can consider adding even at cmp
Earnings Play ~ UPS
When a stock gaps up to a new high on strong earnings, then it leads to a strong follow-through move in a normal market environment. I will buy the stock at 230 hoping against the hope.
Supply Chain issues mean booming Shipping business and freight rates at all-time high
I did cover this before and see stocks like ZIM and DAC making a strong momentum move
The breakout to new high driving DAC
One small-cap breakout play – Golar LNG Limited GLNG
There are two trends at play – 1. Surging Natural Gas prices; and 2. Power plants are switching from Coal to Gas. The LNG market is booming and GLNG operates as an LNG provider.
The stock is a buy with a stop loss below 13.5. Such stocks can easily appreciate 50% from current levels provided the market does not do anything crazy. So always have a stop loss.
Trade Sheet:
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purposes. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers
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